Good news is on the horizon for Canadians in 2025! A boost in the GST/HST credit is coming, giving low- and modest-income individuals and families some extra financial relief. With inflation continuing to affect the cost of living, this increase aims to ease the burden by reducing the amount you pay in sales taxes.
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Whether you’re a long-time resident, international student, or newcomer to Canada, here’s everything you need to know about the upcoming changes to the GST payment, including eligibility, payment amounts, and how you can ensure you’re receiving your fair share.
What Is the GST/HST Credit?
The GST/HST Credit is a tax-free, quarterly payment from the Canada Revenue Agency (CRA) designed to help low- and modest-income Canadians offset the costs of the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST) on everyday purchases.
This credit is recalculated every year based on your family net income and household size, ensuring it targets those who need it most.
Who benefits most from the GST/HST Credit?
- Single individuals facing higher costs of living
- Families, particularly those with children, who are dealing with rising expenses
- Newcomers, including refugees, international students, and temporary workers
GST/HST Payment Increase 2025
The CRA adjusts the GST/HST Credit every year to account for inflation based on the Consumer Price Index (CPI).
In 2025, eligible Canadians will see an increase of 2.7% in the GST/HST Credit compared to 2024. While this increase is slightly smaller than last year’s 4.7% jump, it still represents significant relief in light of rising living expenses.
How Much GST Payment Can You Get in 2025?
The new, higher payments will begin in July 2025 based on your 2024 tax return. Here’s how much you can expect to receive:
- Single individuals: Up to $349 annually (up from $340 in 2024)
- Per child: Up to $184 annually (up from $179 in 2024)
- Couples: Up to $698 annually (combined maximum for both partners)
- Single supplement: Up to $184 annually for eligible low-income singles
For example:
- A family of four (two adults, two children) could receive up to $1,066 annually, or $266.50 per quarter.
- A single parent with one child could receive up to $533 annually, or $133.25 per quarter.
Income Thresholds for 2025
Eligibility for the GST/HST Credit depends on your adjusted family net income (AFNI).
- Phase-in threshold for single supplement: $11,337 (up from $11,039 in 2024)
- Family net income threshold for credit phase-out: $45,521 (up from $44,324 in 2024)
If your AFNI exceeds the phase-out threshold, your GST payment will gradually decrease. If it exceeds the maximum threshold, you will no longer qualify for the credit.
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Who Is Eligible for the GST/HST Credit?
Most Canadian residents for tax purposes are automatically eligible for the GST/HST Credit, provided they meet certain criteria:
General Eligibility
- You must be a Canadian resident for income tax purposes in the month before and at the start of the payment month.
- You must be 19 years or older in that month. If you’re under 19, you need to meet at least one of the following conditions:
- You are (or were) married or in a common-law relationship.
- You are a parent living with your child (currently or previously).
Newcomers to Canada
Newcomers, such as permanent residents, refugees, and temporary residents (e.g., international students, work permit holders), are eligible. However, newcomers must apply for the credit (see “How to Apply” below). The CRA considers you a newcomer during your first year in Canada.
GST Payment Dates for 2025–2026
The CRA issues GST/HST payments quarterly. Here’s when you can expect to see the 2025 payments:
- April 4, 2025
- July 4, 2025 (first payment reflecting the 2.7% increase)
- October 3, 2025
- January 5, 2026
If you don’t receive your payment within 10 working days of these dates, contact the CRA at 1-800-387-1193.
How to Apply for the GST/HST Credit
Most eligible Canadians are automatically enrolled when they file their annual tax return. However, newcomers must apply manually if they arrive in Canada after the tax season.
For newcomers without children:
- Complete Form RC151 (GST/HST Credit and Canada Carbon Rebate Application) and submit it to your local tax center for the year you became a resident for tax purposes.
For newcomers with children:
- Apply using My Account or by mail with Form RC66 (Canada Child Benefits Application), and also complete Form RC66SCH to provide residency and income information.
Important Tip: Always file your 2024 tax return on time to ensure your payment is processed correctly.
What to Do If You Don’t Receive Your GST/HST Payment
If you’re eligible but don’t receive your payment, take these steps:
- Check your CRA My Account for payment status.
- Ensure your 2024 tax return was filed on time and your details are updated.
- Verify your banking information with the CRA for direct deposit.
- If you still haven’t received your payment, contact the CRA at 1-800-387-1193.
Tips to Maximize Your GST/HST Credit
To ensure you receive the maximum benefit, consider these tips:
- File your taxes on time, even if you had no income in 2024.
- Update your personal information (marital status, number of children, etc.) with the CRA to avoid delays.
- Apply for provincial credits along with the GST/HST Credit, as they may also increase in 2025.
- Set up direct deposit to receive payments faster and avoid delays.
Frequently Asked Questions (FAQs)
- When will the new GST payment amounts start?
Payments will start on July 4, 2025, based on your 2024 tax return. - Do I need to apply for the GST/HST Credit?
Most Canadians are automatically enrolled after filing taxes. Newcomers must apply using Form RC151 (without children) or Form RC66 (with children). - How much will a family of four receive in 2025?
A family of four could receive up to $1,066 annually, or $266.50 per quarter, depending on income. - What if I don’t receive my payment?
Wait 10 working days after the payment date, then check CRA My Account or call 1-800-387-1193. - Are international students eligible?
Yes, international students and other newcomers are eligible to apply for the GST/HST Credit during their first year in Canada.
The 2025 GST/HST Credit increase is a valuable opportunity for Canadians, offering crucial financial relief amid rising living costs. Whether you’re a single individual, a parent, or a newcomer, this tax-free credit will help ease the burden of everyday expenses. Stay on top of your taxes, ensure your information is up to date, and make sure you’re prepared to receive your increased payment starting July 2025!
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